Proposed Rule2026-08335
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; Increased Assessment Rate
Primary source
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Published
April 29, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Texas Valley Citrus Committee (Committee) to increase the assessment rate established for the 2025-2026 fiscal period and subsequent fiscal periods from $0.04 to $0.07 per 7/10-bushel carton or equivalent of oranges and grapefruit grown in Texas. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 91 Issue 82 (Wednesday, April 29, 2026)</title>
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[Federal Register Volume 91, Number 82 (Wednesday, April 29, 2026)]
[Proposed Rules]
[Pages 23021-23023]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08335]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 91, No. 82 / Wednesday, April 29, 2026 /
Proposed Rules
[[Page 23021]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS-SC-25-0040]
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Texas Valley Citrus Committee (Committee) to increase the assessment
rate established for the 2025-2026 fiscal period and subsequent fiscal
periods from $0.04 to $0.07 per 7/10-bushel carton or equivalent of
oranges and grapefruit grown in Texas. The proposed assessment rate
would remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by May 29, 2026.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be sent to the Docket Clerk electronically by Email:
<a href="/cdn-cgi/l/email-protection#a4e9c5d6cfc1d0cdcac3ebd6c0c1d6e7cbc9c9c1cad0e4d1d7c0c58ac3cbd2"><span class="__cf_email__" data-cfemail="ce83afbca5abbaa7a0a981bcaaabbc8da1a3a3aba0ba8ebbbdaaafe0a9a1b8">[email protected]</span></a> or via the internet at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record, will be made available to the public, and can be viewed
at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Please be advised that comments are
posted to <a href="http://regulations.gov">regulations.gov</a> without change.
FOR FURTHER INFORMATION CONTACT: Delaney Fuhrmeister, Marketing
Specialist, or Christian D. Nissen, Chief, Southeast Region Branch,
Market Development Division, Specialty Crops Program, AMS, USDA;
telephone: (863) 324-3375, or email: <a href="/cdn-cgi/l/email-protection#e6a2838a8788839fc8a0938e948b838f95928394a693958287c8818990"><span class="__cf_email__" data-cfemail="df9bbab3beb1baa6f199aab7adb2bab6acabbaad9faaacbbbef1b8b0a9">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#0a49627863797e636b6424446379796f644a7f796e6b246d657c"><span class="__cf_email__" data-cfemail="ce8da6bca7bdbaa7afa0e080a7bdbdaba08ebbbdaaafe0a9a1b8">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674) (the Act), and Marketing Order No. 906 (7 CFR part 906) (the
Order), which regulates the handling of oranges and grapefruit grown in
the Lower Rio Grande Valley in Texas. The Committee locally administers
the Order and is comprised of producers and handlers of oranges and
grapefruit operating within the area of production.
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends existing Marketing Order No. 906, as amended (7 CFR part 906),
Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas,
and is necessary for the continued operation of Marketing Order No.
906. Additionally, this action is exempt from the requirements of
Executive Order 14192, ``Unleashing Prosperity Through Deregulation,''
pursuant to section 5(c).
This proposed rule has been reviewed under Executive Order 13175,
``Consultation and Coordination with Indian Tribal Governments,'' which
requires Federal agencies to consider whether their rulemaking actions
would have Tribal implications. The Agricultural Marketing Service
(AMS) has determined this proposed rule is unlikely to have substantial
direct effects on one or more Indian Tribes, on the relationship
between the Federal Government and Indian Tribes, or on the
distribution of power and responsibilities between the Federal
Government and Indian Tribes.
This proposed rule has been reviewed under Executive Order 12988,
``Civil Justice Reform.'' Under the Order now in effect, Texas orange
and grapefruit handlers are subject to assessments. Funds to administer
the Order are derived from such assessments. It is intended that the
proposed assessment rate would be applicable to all assessable Texas
oranges and grapefruit for the 2025-2026 fiscal period, and continue
until amended, suspended, or terminated.
This proposed rule would increase the assessment rate for Texas
oranges and grapefruit handled under the Order from $0.04 to $0.07 per
7/10-bushel carton or equivalent for the 2025-2026 fiscal period and
subsequent fiscal periods.
Sections 906.33 and 906.34 of the Order authorize the Committee,
with the approval of AMS, to formulate an annual budget of expenses and
collect assessments from handlers to administer the program. The
members of the Committee are familiar with the Committee's needs and
with the costs of goods and services in their local area and, thus, can
formulate an appropriate budget and assessment rate. The assessment
rate is formulated and discussed in a public meeting, and all directly
affected persons have an opportunity to participate and provide input.
For the 2024-2025 fiscal period, the Committee recommended, and AMS
approved, an assessment rate of $0.04 per 7/10-bushel carton or
equivalent of Texas oranges and grapefruit. That rate continues in
effect from fiscal period to fiscal period until modified, suspended,
or terminated by AMS upon recommendation and information submitted by
the Committee or other information available to AMS.
The Committee met on June 3, 2025, and unanimously recommended
2025-2026 fiscal period expenditures of $209,970 and an increased
assessment rate of $0.07 per 7/10-bushel carton or equivalent of Texas
oranges and grapefruit handled for the 2025-2026 fiscal period and
subsequent fiscal periods. The proposed assessment rate of $0.07 is
$0.03 higher than the rate currently in effect. The Committee
recommended increasing the assessment rate to provide additional
funding for compliance and to increase its financial reserve. The
Committee estimates shipments of approximately 3,600,000 7/10-bushel
cartons or equivalent of Texas oranges and grapefruit for the 2025-2026
fiscal period, which is 400,000 fewer cartons than was handled for the
2024-2025 fiscal period.
The Committee derived the recommended assessment rate by
[[Page 23022]]
considering anticipated expenses, an estimated 3,600,000 7/10-bushel
cartons or equivalent of assessable Texas oranges and grapefruit, and
the amount of funds available in the authorized reserve. At the current
assessment rate of $0.04, the expected shipments of 3,600,000 7/10-
bushel cartons or equivalent of assessable Texas oranges and grapefruit
would generate $144,000 in assessment revenue (3,600,000 7/10-bushel
cartons or equivalent of fruit multiplied by $0.04 assessment rate),
which would require the use of $65,970 from the financial reserve to
cover the anticipated expenditures of $209,970 for the 2025-2026 fiscal
period. By increasing the assessment rate by $0.03 to $0.07, assessment
income would generate $252,000 (3,600,000 7/10-bushel cartons or
equivalent of fruit multiplied by $0.07 assessment rate) for the 2025-
2026 fiscal period. Income derived from handler assessments would be
sufficient to meet the Committee's recommended budgeted expenditures of
$209,970 for the 2025-2026 fiscal period, while adding money to the
financial reserve ($42,030). Funds available in the financial reserve
(currently about $37,500) would be kept within the maximum permitted by
the Order (approximately one fiscal period's expenses as authorized in
Sec. 906.35).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS upon recommendation
and information submitted by the Committee or other available
information. Although this assessment rate would be in effect for an
indefinite period, the Committee will continue to meet prior to or
during each fiscal period to recommend a budget of expenses and
consider recommendations for modification of the assessment rate. The
dates and times of Committee meetings are available from the Committee
or AMS. Committee meetings are open to the public and interested
persons may express their views at these meetings. AMS will evaluate
Committee recommendations and other available information to determine
whether modification of the assessment rate is needed. Further
rulemaking would be undertaken as necessary. The Committee's 2025-2026
fiscal period budget, and those for subsequent fiscal periods, will be
reviewed and approved by AMS.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this proposed rule on small entities. Accordingly, AMS has prepared
this initial regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act are unique in that they are brought about through
group action of typically small entities acting on their own behalf.
There are approximately 75 citrus producers in the production area
and 17 handlers subject to regulation under the Order. At the time this
analysis was prepared, the Small Business Administration (SBA) defined
small agricultural producers as those having annual receipts equal to
or less than $4,000,000 for orange producers (NAICS code 111310, Orange
Groves), and $4,250,000 for other citrus producers, including
grapefruit (NAICS code 111320, Citrus (except Orange) Groves). Small
agricultural service firms, which include citrus handlers, were defined
by the SBA as those having annual receipts equal to or less than
$34,000,000 (NAICS code 115114, Postharvest Crop Activities) (13 CFR
121.201).
The USDA National Agricultural Statistics Service (NASS) reported
the 2023-2024 producer prices for U.S. fresh oranges and grapefruit
were $11.63 and $15.63 per carton, respectively. The prices for U.S.
fresh oranges and grapefruit are used for this RFA because NASS does
not publish fresh citrus prices for Texas. Based on data provided by
the Committee, the number of orange and grapefruit 7/10-bushel cartons
or equivalents shipped in the 2023-2024 season were 1,462,800 and
2,513,258, respectively.
Using the producer prices, shipment data, and the total number of
Texas orange and grapefruit producers, and assuming a normal
distribution, the majority of producers have estimated average annual
receipts of significantly less than the SBA threshold of $4 million
($11.63 multiplied by 1,462,800 cartons plus $15.63 multiplied by
2,513,258 cartons equals $56,294,586, divided by 75 producers equals
$750,594 per producer).
In addition, based on the NASS data, the average prices of fresh
U.S. oranges and grapefruit handled for 2023-2024 season were $18.40
and $23.05 per carton, respectively. Using the same shipment data from
the Committee, the number of orange and grapefruit cartons shipped in
the 2023-2024 season, and assuming a normal distribution, the majority
of Texas orange and grapefruit handlers have average annual receipts of
less than $34 million ($18.40 multiplied by 1,462,800 cartons plus
$23.05 multiplied by 2,513,258 cartons equals $84,846,117, divided by
17 handlers equals $4,990,948 per handler). Thus, the majority of Texas
orange and grapefruit producers and handlers may be classified as small
entities.
This proposed rule would increase the assessment rate collected
from handlers for the 2025-2026 fiscal period and subsequent fiscal
periods from $0.04 to $0.07 per 7/10-bushel carton or equivalent of
Texas oranges and grapefruit. The Committee unanimously recommended
2025-2026 expenditures of $209,970 and an assessment rate of $0.07 per
7/10-bushel carton or equivalent. The proposed assessment rate of $0.07
is $0.03 more than the current assessment rate. The 2025-2026 shipments
are estimated to be 3,600,000 7/10-bushel cartons or equivalent of
Texas oranges and grapefruit. The $0.07 rate should provide $252,000 in
assessment income (3,600,000 7/10-bushel cartons or equivalent of fruit
multiplied by $0.07 assessment rate). Income derived from handler
assessments should provide sufficient funds to meet budgeted expenses
for the 2025-2026 fiscal period.
The Committee recommended increasing the assessment rate to provide
additional funding for compliance and to increase its financial
reserve. The Committee estimates shipments for the 2025-2026 season to
be around 3,600,000 7/10-bushel cartons or equivalent of Texas oranges
and grapefruit. Given the estimated number of shipments, the current
assessment rate of $0.04 would generate $144,000 in assessment income
(3,600,000 7/10-bushel cartons or equivalent of fruit multiplied by
$0.04 assessment rate), which would require the use of $65,970 from the
financial reserve to cover the anticipated expenditures of $209,970 for
the 2025-2026 fiscal period. By increasing the assessment rate from
$0.04 to $0.07, assessment income would be $252,000 (3,600,000 7/10-
bushel cartons or equivalent of fruit multiplied by $0.07 assessment
rate). This amount should provide sufficient funds to meet the
anticipated 2025-2026 expenses, while adding money to the financial
reserve.
Prior to arriving at this budget and the assessment rate, the
Committee considered alternatives, including five different proposed
budgets with different combinations of assessment rates, estimated
shipments, and alternate expenditure levels. Ultimately, the Committee
determined the assessment rate of $0.07 would achieve its goals of both
adequately funding Committee operations and increasing its
[[Page 23023]]
financial reserve. Consequently, the alternatives were rejected.
A review of historical and preliminary information pertaining to
the 2025-2026 fiscal period indicates the average producer price for
Texas oranges and grapefruit for the 2025-2026 season should be
approximately $14.15 per 7/10-bushel carton or equivalent. Therefore,
utilizing the recommended assessment rate of $0.07 per 7/10-bushel
carton or equivalent, assessment revenue for the 2025 fiscal period as
a percentage of total producer revenue would be approximately 0.5
percent ($0.07 divided by $14.15 multiplied by 100).
This proposed rule would increase the assessment obligation imposed
on Texas orange and grapefruit handlers. Assessments are applied
uniformly on all handlers, and some of the costs may be passed on to
producers. However, these costs are expected to be offset by the
benefits derived by the operations of the Order.
Committee meetings are widely publicized throughout the Texas
citrus industry. All interested persons are invited to attend meetings
and participate in Committee deliberations. Like all Committee
meetings, the June 3, 2025, meeting was a public meeting, and all
entities, both large and small, were able to express views on this
issue. Finally, interested persons are invited to submit comments on
this proposed rule, including the regulatory and informational impacts
of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the Order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189, Fruit Crops. This proposed rule does not
require changes to the current information collection. Should any
changes become necessary, they would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large Texas citrus
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act to promote
the use of the internet and other information technologies, to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this proposed rule
is consistent with and would effectuate the purposes of the Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this
rulemaking.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 906 as follows:
PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY
IN TEXAS
0
1. The authority citation for 7 CFR part 906 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 906.235 is revised to read as follows:
Sec. 906.235 Assessment rate.
On and after August 1, 2025, an assessment rate of $0.07 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit
grown in the Lower Rio Grande Valley in Texas.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-08335 Filed 4-28-26; 8:45 am]
BILLING CODE 3410-02-P
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